GSK Organizational Performance: Business Strategy and Stakeholders

This report provides an analysis of GlaxoSmithKline Plc's (GSK) organizational performance, focusing on its business strategies, stakeholder value, and operational effectiveness. It discusses the importance of aligning organizational culture with human resource practices to enhance employee satisfaction and overall productivity. The report explores GSK's matrix organizational structure and its approach to balancing stakeholder and shareholder needs. It examines various competitive strategies, including cost leadership, differentiation, and focus strategies, and their impact on GSK's market position. Furthermore, the report assesses operational performance measures such as quality, speed, dependability, flexibility, and cost, and their role in driving organizational improvement. Benchmarking and balanced scorecards are also discussed as methods for measuring and improving organizational performance. The report concludes by addressing organizational design, control systems, and strategic change management within GSK, emphasizing the importance of adapting to internal and external environmental changes to maintain a competitive edge. This assignment solution is available on Desklib, a platform offering a wide range of study tools for students.

UNDERSTANDING ORGANISATIONAL PERFORMANCE
- A Report on GSK
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Executive Summary
GlaxoSmithKline Plc works for the welfare of the people of the UK to all around the world.
The purpose of the assignment follows different approach in different condition flexibly in
order to maintain their workforce efficiency and employee satisfaction. The context evolves
the primary role of any organization to create values for both stakeholder and shareholders.
Different leadership and management strategies are also discussed to improvise the
opportunity of skill development program for operational environment of a organization.
Some critical findings and recommendation are also included in this report as farther
evaluation of this context over applicability.
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Table of Contents
Introduction:...............................................................................................................................4
Methodology..............................................................................................................................5
Assessing organisational performance:......................................................................................5
Findings....................................................................................................................................13
Conclusions..............................................................................................................................14
References:...............................................................................................................................15
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Introduction:
GlaxoSmithKline Plc is one of the largest organizations in health care segment in UK, which
is also involved with researching on medicine for people to cure them from serious diseases.
The company worked for the welfare of the people of the UK to all around the world. From
various recent studies, it has been noticed that the organizational culture for managing
performance are strongly influenced by its human resource and employee relationship
practices with suitable awarding and performance enhancement policies. The leadership style
of this company also plays an effective part in performance management and upbringing of
GSK. Being a participant in healthcare segment the company needs some strong motivational
strategy to make the employees very efficient and patient. The monitoring module also
assesses the performance enhancing and motivational procedure of the company. Different
employee groups from different departments have their own performance measurement and
skill development program suitable for their purposes in company GSK (Gsk.com., 2018). On
other hand GSK follows matrix organizational structure to have most productive outcomes
from the employees with less amount of time and side-effects. From the beginning of the
journey the company has followed different approach in different condition flexibly in order
to maintain their workforce efficiency and employee satisfaction.
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Methodology
Assessing organisational performance:
Organizational performance means the group of outcomes that regulate the productivity of
the organization to become successful in a competitive environment within any business
market by using several business and organizational strategies (Henry, 2011). Hence, the
performance management refers a set of internal activities of the organization by which they
can monitor the overall productivity and efficiency of the workforce within the organizational
structure and manage the departmental interrelation and designation tree with tactical
leadership and human resource management as well as skill development management. The
strategic approach means the compatible approach to execute the performance management
architecture with effective outcomes by wasting less amount of time. These strategies allow
the company to match its resources and capabilities according to the requirement of external
environment for achieving competitive advantage. Some other essential parts of this
organisational performance management schema are performance measuring and the
analysis, which help to identify the correct needs for integrated skill development approach.
According to the application this approach can be classified further in tow basic application
fields, those are: organizational approach and individual approach. On organization
approach, the performance measurement and analysis focus on the overall productivity of the
organization, whereas in personal approach the performance measurement and analysis focus
on individual employees and their performance and accuracy as well as required skill
development processes.
Stakeholder needs and maximising shareholder value:
Stakeholders are some individuals or groups or people who have strong and shared influence
over the achievement of an organization include customers, suppliers, employees,
government, local communality, business partners etc. Therefore, it is the primary role of any
organization to create values for both stakeholder and shareholders (Armstrong and Taylor,
2014). The management has the responsibility to balance the needs of stakeholders and
shareholders. Shareholder means some individuals who invest in the venture of the company
and have their right in profit and loss amount. According to the needs of the stakeholders and
their effective power and interest the stakeholders can be classified in two subsections, those
are: Least influenced stake holders who have less amount of power and interest and other one
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is most influenced stakeholders who have high power and interest. The parameter Power
refers the ability of a stakeholder to influence the objectives of the organization and the
parameter interest means their willingness to influence an organizational objectives.
Business Strategy and the Resource-based view:
The business strategy involves with two basic components and competitive strategies with
resource based approach in strategy formation. An organization has numerous business
operations in several individual markets serving different customer segments. The market is
regulated by the requirement and needs of the customers and potential customers in multi
threaded situation. These conditions vary within the industry from multiple regulatory factors
like suppliers, production technology, workforce strength etc. Individual strategic business
units help to formulate most suitable business strategy that focuses on particular market
segment and relevant products and services (Freeman, 1984). Two essential strategies are
corporate strategies that determine the internal and external environment of any organization
and business level strategy that monitor the development level comparing to other
competitors. Three generic competitive strategies helps an organization to survive in a
competitive market with sufficient profitability, those are cost leadership strategy,
differentiation strategy and focus strategy.
In cost leadership strategy, the organization plans to provide their products and service in
lowest cost within the industry to attract more customers from other competitor towards
themselves. This strategy helps to earn more in small time with strong collective profitability
where the target in serve as much as possible to capture the market segment. In differentiation
strategy the organization differentiates the customers in different segments and executes a
target making marketing style where the organization has to produce different elements to
beat different competitors (Marchington et al., 2016). On other hand, the focus strategy leads
the organization to focus on a particular market segment to develop their specialization over
that segment. These strategies can also be identified as resource base where internal resource
and capabilities provide the basic direction of market strategy. However, resources and
capabilities can be primary source of profit for the company in a effective resource based
approach.
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Operational performance measures and importance and performance criteria:
The five keys of operational performance measurement where the current capability of a
department or an employee is measured by several measuring tactics and activities are
Quality, Speed, Dependability, Flexibility and Cost. In these key factors the quality ensures
the right direction, speed refers how fast the company development is, dependability means
the capability of being executable in a particular situation, flexibility means the ability to
change the operational architecture and cost ensures the productivity of the organization. In
every company, these factors have their own advantages and disadvantages (Wilkes et al.,
2011). There are two major influences within these factors, in which operations decide about
most improvement priorities, those are: the needs and preferences of customers and the
performance and activities of competitors.
Needs and preferences of customers
Primary objectives
 Providing advantages to the customers
 Providing important advantages with most customers
 Providing useful advantage with most customer
Qualifying objectives
 Maintain industry standard
 Focussing on median industry standard
 Reduce the gap with rest of the industry
Secondary objectives
 Focusing on pricing
 Keep rate as a important property
 Prevent confederation
Performance and activities of competitors
Greater than competitors
 Betterment comparing nearest competitor
 Clarity of betterment
 Measure the margin of betterment
Same as competitors
 Betterment than most competitors
 Same as the most competitors
 Very close to the main competitor
Worse than competitors  Measure the margin of the competitor
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 Prevent deduction from slandered
 Break the consistency of losses
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Balanced Scorecard and Benchmarking:
Balanced scorecard and Benchmarking is two approaches for measuring the organizational
performance overly and individually. Both of these approaches have unique design and
investigation module including record analysis, interpretation, skill development program,
strategy alteration etc (Kaplan and Norton, 1996). In these approaches, the organization
measures their performance from wider perspective instead of traditional financial measures
that can highlight the future performance of the company more clearly. It also allows the
management team to provide a consistent cooperation between aims and undertaken
strategies involving customer satisfaction, internal process and innovative and improvement
activities. The balance scorecard approach includes four sections, such as: financial
perspective, consumer perspective, internal process perspective and learning and growth
perspective.
The financial perspectives refer the objectives of the organization that allows managers to
monitor the financial growth and shareholder value. Whereas, the customer perspective deals
with customer satisfaction, market shares, customer attraction etc. The internal process
perspective provides essential internal operational goals and the module outlines to deliver
customer objectives. On other hand, the learning and growth perspective allows practical
regulatory force like skills, training, organisational culture, leadership, system, and database.
The benchmarking approach mostly focuses on overall organizational development by
comparing the key advantages and disadvantages with other competitors. It also allows the
management to improve the performance by applying most efficient practices including
reputation making and standardisation.
Organisational design, structure and communications:
The organizational structure is the basic architecture of the work distribution model with
responsibility and reliability regulators as a workflow chain or tree management (Berle and
Means, 1932). It is the division of the labour for specialized task and the integrated
coordination between them. Usually there are five types of organizational structure noticed in
any well-designed organization, those are: the entrepreneurial structure, Functional Structure,
Divisional Structure, Matrix Structure and Network Structure.
In entrepreneurial structure, all of the departments resolve around the founder considering the
founder as a centre where every decision are made by the founder. Considering the growth,
the company the founder can hire different managers for different departmental functions.
The functional structure breaks the workforce within few linear branches in a ladder-based
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hierarchical system. Divisional structure allows the company to make different departments
for different markets by making individual business units. It allows the decentralised decision
making for divisional managers to response efficiently and effectively. In matrix structure,
both divisional and functional structures are feasible as well as their advantages and
disadvantages by forming a matrix like hierarchical structure for work distribution (Slack et
al., 2012). It increases the organizational flexibility in order to balance the demand and
supply. The network structure configures the outsourced activities controlled by central hub
allowing quick response environment.
Organisational control systems and strategic change:
The design of the organization should contain the control as well as the reward system that
ensures about the member of the organization being actively engaged to achieve the goals of
the company. The Control Systems includes agreed objectives, monitoring mechanism,
performance measurement, Rewards and approve. The main three reasons for establishing the
control system are strategic changes that help to motivate managers for their objectives, to
help coordinating the activities of different department, to assess the senior managers to
monitor different organizational debarments and their activities (Slack and Lewis, 2002). It
also helps to improvise various discussion methods involving different units and managers.
The foundation of the organisation depends on the stability of these strategies to cope up with
internal and external environmental change management. For some case the difficulty
increases along with certain change management decision making parameters including
various control unites and circumstances.
The strategic changes fix the misbalance between resource and capabilities within and
changing environment in order to adopt external and internal changes for surviving in
competitive environment. It also allows the management team to provide a consistent
cooperation between aims and undertaken strategies involving customer satisfaction, internal
process and innovative and improvement activities. The organizational changes can be
divided into three sectors, those are: structure development, process implement and cultural
practices (Morden, 2004). There are different phases within the change management policies,
such as: creativity, then direction, then delegation, then coordination and finally
collaboration. It helps to determine suitable changes for the organization than can make the
work performance good to better.
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Strategic performance leadership:
In order to monitor the performance and needs of development of individual employee the
leaders have the responsibility to keep track the performance of the employees and
determination of their strength and weakness. This unique vision gives the organization the
opportunity to execute multiple skill development procedures simultaneously (Certo and
Certo, 2009). However, the management gives instructions within the operational architecture
to the workforce regarding fundamental objectives. Both of these monitoring and
development system provide the consistent results with the adaptive learning strategy.
Adaptive learning enables the ability to cope with changes in individual environment. On
other hand the generative learning is about creating the change by comparing other
competitors for current consequences.
Leadership activities Management activities
Dealing with changes Dealing with organizational complexity
Develop a vision and setting the
direction of the company
Planning and budgeting the financial
and operational values
Cooperating stakeholders according to
the vision of the organization
Organizing the strategy and effective
implementation
Formulating the given strategies Implementing effective strategies
Motivating and inspiring the workforce Controlling the culture and the
behavioural issues of the company.
Recognizing the strength and weakness
of the workforce
Developing skill development program
to improve productivity and survival
tactics
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Strategic change and organisational culture:
The culture of any organization is the regular practices and traditional interaction process of
thinking and doing several tasks, which is shared to a better or smaller scale with all its
members and where the new members have to learn, and at least accept partially. The
irresistible majority of analyst in this field says about uncertainties over challenge to
implement organizational changes. Cultural environment is an attempt by managers in order
to monitor employees along with their opinion and works. The cultural interchanges are
considerably effective in employee relationship modules and practices engaging employers
and managers in various issues of related to individual. The organizational structure is also
the rood of the employee loyalty and their performance acceptances regarding different social
identities and existential securities. Usually, employees of an organisation have a high
emotional state due to changes in their conventional culture that gradually introduce strong
resistance force against proposed changes (Goldman et al., 2003).
Resistance can be demonstrated in various ways in order to altering the level of impact from
passive to hostile. Usually the resistance acts as a silent regulator having long ranged impact
on change management decision making. By providing adequate interaction with employers
and employee and giving limited access to the decision making of change management
process the company can implement their strategic change within their organizational
structure. Therefore, it is the primary role of any organization to create values for both
stakeholder and shareholders. The management has the responsibility to balance the needs of
stakeholders and shareholders.
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